Organic growth and recent acquisitions boosted EOH's revenue 40% in the year to July, taking turnover to just over R5 billion, with half of that amount being added in the second six months.
The listed company this morning reported profit after tax of R331 million, a 49% gain, while cash grew 45%, to R653 million. Its headline earnings per share - a key indicator of performance - gained 34%, to 339c, and it boosted its dividend payout to 95c, a 36% gain.
Its acquisition strategy continued during the year as it made several small acquisitions, spending R224.6 million in the first six months alone out of a total of R358 million. It says R203 million was paid in cash, with the balance paid in shares. The company currently has a market capitalisation of R7.3 billion.
The combined revenue of the companies it bought added R604 million to its top line, and R61 million to pre-tax profit.
In a statement to shareholders, it said all areas of its business saw growth during the year. Its services unit, which it has been growing in line with its strategic intentions, was the "most significant" revenue generator.
Service revenue gained 55%, software revenue was up 12%, and infrastructure revenue grew 13%. EOH's gross profit margin is 40% and the operating margin is 9.7%.
Targeted growth
"EOH will continue to expand its solutions and service offerings and strengthen its knowledge-based industry services," it says. "This will be achieved through organic growth complemented by acquisitions."
"We have the people, the financial resources, the agility, the track record, and the know-how to continue to grow aggressively in all areas of our business and to expand into new services and territories," says CEO Asher Bohbot.
The listed company anticipates growing its managed services, cloud, enterprise applications, information management, business process outsourcing, human capital solutions, security solutions and industrial technology businesses.
"Prospects in the rest of Africa are encouraging and we see future growth in identified countries," says Bohbot.
During the year, EOH made inroads into Africa and aims to grow its presence. It says it now has the structures and processes in place to be far more strategic and proactive in its approach to doing business in Africa.
EOH has identified several countries in East and West Africa that it hopes will account for around 30% of its revenue within five years. Bohbot has said that EOH's plan is to set up bases with local partners in a bid to offer its full suite of offerings and, at half year, it was looking at Kenya, Tanzania, Nairobi, Nigeria and Ghana.
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